Norway has been one of the biggest proponents of allowing miners to use their energy. However, the current situation on the international level is quite challenging for Europe as a whole as energy demands skyrocket alongside prices. Natural Gas futures are at all-time high and the same may happen to oil after OPEC decided to cut back production.
It seems that Europe is bracing for a storm and wants to reduce its energy consumption as much as possible. In such trying times, things like crypto mining are first to lay down on the chopping block. Right now, Norway has more pressing issues to think about. For example, the increased demand from its European partners who need energy more than ever.
The country had a relaxed stance on mining
Crypto miners enjoyed many benefits from the Norwegian government. It should be noted that the country has rich reserves of natural gas and other carbohydrate fuels allowing to be a little bit more frivolous with energy use compared to other European countries that rely mostly on renewable energy and importing fuels from other countries.
During the period of abundance, the Norwegian government was more than happy to embrace energy-hungry crypto miners and even provide significant tax cuts to new businesses. The situation is changing rapidly. The recent announcement from Norway that it will reverse cuts and will provide energy using the same terms as for any other business makes it hard to believe that crypto miners will be profitable operating in Norway.
Ethereum’s switch from PoW to PoS devastated many GPU miners, but many still found ways to continue mining by switching to other networks like RavenCoin. While they are not as profitable, they can still bring income with cheap energy. Now, it is something not possible in all Nordic countries.
It is uncertain what miners will have to do
Bitcoin miners who also base in Norway will have to think about cutting back on mining. It has been a very competitive period for all miners with hash rates going up despite the crypto winter and dwindling profits. Many miners even had to liquidate their BTC positions in the market to cover costs.
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